TARP 2? ZeroHedge reports Bank of America going belly up!

[InvalidID]

Does the Fed have enough juice to even consider a TARP 2? Is there political will to allow it happen? Personally I was extremely against the first bailouts, they contributed largely to our national debt as it is. Another round of bailouts is, in my mind, unthinkable.

With Bank of America investors finally realizing it is game over for the company as a going concern, at this point there are just two options for Brian Moynihan: the spin off of CFC as a bad bank, backstopped by the Fed, or, well, Chapter 11, which for a bank is essentially liquidation (and with CDS trading up 50 bps to 260 a bankruptcy seems increasingly inevitable). It also means that another TARP is on the way. And once America realizes that another several trillion have to be put into its insolvent banking sector, it will get quite violent. The biggest irony: it is AIG which takes down the financial system for the second time after its lawsuit against BAC filed last night kills Bank of America.

http://www.zerohedge.com/news/here-c...y-contemplated

[TNHermit]

Halleluiah!!!

I HATE THOSE GUYS

[TNHermit]

There is a peice on the TF about AIG is suing BAC for mortgage fraud. funny thing is AIG was forced by the fed to sign an agreement to not sue BAC if they got bailed out. One of the little "fixes" by the crooks
All going to be very interesting.

[Ann-NWIowa]

If B of A goes down will that include all portions of B of A? Are mortgage and credit cards part of the whole or separate entities under the blanket of B of A?

[InvalidID]

It's all a part of the whole. Mortgage, creditcards, deposits. The whole show.

I don't think FDIC has enough cash on hand to cover all the deposits either.

[TNHermit]

Originally Posted by Ann-NWIowa

If B of A goes down will that include all portions of B of A? Are mortgage and credit cards part of the whole or separate entities under the blanket of B of A?

I'll be looking to see to. I know BA spun off another BA bank just for the mortgage which they have some 52,000 all screwed up. Just have to wait and see. and see if Benny bails their sorry butts out some back door way.

[Laura Zone 5]

So what happens if your mortgage is with BofA?

[InvalidID]

Someone else will buy it, at a discount. You would still owe the same amount you'd just send the checks to someone else.